Correlation Between Integrated Cannabis and Herborium
Can any of the company-specific risk be diversified away by investing in both Integrated Cannabis and Herborium at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Integrated Cannabis and Herborium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Cannabis Solutions and Herborium Group, you can compare the effects of market volatilities on Integrated Cannabis and Herborium and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Integrated Cannabis with a short position of Herborium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Cannabis and Herborium.
Diversification Opportunities for Integrated Cannabis and Herborium
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Integrated and Herborium is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Cannabis Solutions and Herborium Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herborium Group and Integrated Cannabis is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Integrated Cannabis Solutions are associated (or correlated) with Herborium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herborium Group has no effect on the direction of Integrated Cannabis i.e., Integrated Cannabis and Herborium go up and down completely randomly.
Pair Corralation between Integrated Cannabis and Herborium
If you would invest 0.08 in Integrated Cannabis Solutions on August 25, 2024 and sell it today you would earn a total of 0.29 from holding Integrated Cannabis Solutions or generate 362.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Integrated Cannabis Solutions vs. Herborium Group
Performance |
| Timeline |
| Integrated Cannabis |
| Herborium Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Integrated Cannabis and Herborium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Cannabis and Herborium
The main advantage of trading using opposite Integrated Cannabis and Herborium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Cannabis position performs unexpectedly, Herborium can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Herborium will offset losses from the drop in Herborium's long position.| Integrated Cannabis vs. Speakeasy Cannabis Club | Integrated Cannabis vs. City View Green | Integrated Cannabis vs. Benchmark Botanics | Integrated Cannabis vs. Ravenquest Biomed |
| Herborium vs. Cann American Corp | Herborium vs. GelStat Corp | Herborium vs. Green Cures Botanical | Herborium vs. Nutranomics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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